IMPACT OF SOCIAL MEDIA ADVERTISING AND

SALES PROMOTION ON CAFÉ/Restaurant(s)

(Bon appetit Café/Restaurant, Thamel)

BY
Swornima Manandhar
T.U. Registration no. 7-2-547-95-2014

A summer project report submitted to

Faculty of Management, Tribhuvan University
In the partial fulfillment of the requirements for the degree of

Bachelor of Business Administration (BBA)

At the
Institute of Management Studies(IMS)
Tribhuvan University

Thapathali,Kathmandu
April,2018
 STUDENT DECLARATION

This is to certify that I have completed the Summer Project entitled “Effect of social
media advertising and sales promotion on café’s/restaurant’s” under the guidance of
Mr. Sanjay kumar Shrestha in partial fulfillment of the requirements for the degree of
Bachelor of Business Administration at Faculty of Management, Tribhuvan
University. This is my original work and I have not submitted it earlier elsewhere.

signature

Date:April16,2018 Swornima Manandhar

1
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Impact of Social Media
Advertising and Sales Promotion on Bon Appetit Cafe/ Restaurant(s) is an academic
work done by Swornima Manandhar submitted in the partial fulfillment of the
requirements for the degree of Bachelor of Business Administration at the Faculty of
Management ,Tribhuvan University submitted under my guidance and supervision. To
the best of my knowledge the information presented by her in the summer project
report has not been submitted earlier.

…………………………...
(signature of the supervision)
Prof. Dr. Sanjay Kumar Shrestha
16th april,2018

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 ACKNOWLEDGEMENT

The summer project has been prepared to fulfill the partial requirement for BBA
degree of Tribhuvan University. Such program gives the students with platform to test
their knowledge and understanding where they can widen up their horizon with the
experience they entertain and skill they acquire.

I would like to extend my special regards to all those who have contributed directly
and indirectly to complete this report. Initially the credit for the completion of the
report goes to my supervisor Prof. Dr. Sanjay kumar Shrestha who has been so kind
and supportive throughout the project.

I have tried my best to minimize errors to extent possible by consulting my

supervisor, friends and various books.

TABLE OF CONTENT

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STUDENT DECLARATION.........................................................................................................i

CERTIFICATE FROM THE SUPERVISOR.............................................................................ii

ACKNOWLEDGEMENT...........................................................................................................iii

LIST OF TABLES........................................................................................................................vi

LIST OF FIGURES.....................................................................................................................vii

EXECUTIVE SUMMARY........................................................................................................viii

CHAPTER 1:.................................................................................................................................1

INTRODUCTION.........................................................................................................................1

1.1 Context Information:..............................................................................................................1

1.2 Purpose of the study...............................................................................................................2

1.3 Significance of the study:.......................................................................................................2

1.4. Literature survey:..................................................................................................................2

1.4.1 Consumer Decision Making Process: Based on Social Media Advertising:...................3

1.4.2 Social Networks has gained popularity as the most viable communication choice:.......5

1.4.3. Marketers influencing customers’ decision-making process through social media:......7

1.4.4 Attitude of Customers towards Digital Advertising:.......................................................9

1.4.5 Relationship between Sales Promotion and Customer Behavior & increase in
company sales:.........................................................................................................................9

1.5 Research methods used for data collection and analysis:...................................................10

1.5.1 Data Source...................................................................................................................10

1.5.2 Collection Tools:............................................................................................................11

1.5.3 Data analysis tools and techniques................................................................................11

CHAPTER 2.................................................................................................................................12

DATA PRESENTATION & ANALYSIS....................................................................................12

2.1 Respondent profile:..............................................................................................................12

2.2. Data Presentation:...............................................................................................................14

2.2.1 Factors affecting social media advertisement on café/restaurant business:..................14

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 2.2.2 How sales promotion affects café/restaurant business:.................................................17

2.3 Data analysis:.......................................................................................................................20

2.4. Findings and discussions:....................................................................................................20

CHAPTER 3.................................................................................................................................22

CONCLUSION AND ACTION IMPLICATIONS...................................................................22

3.1 Conclusion:..........................................................................................................................22

3.2 Action Implications:............................................................................................................23

REFERENCES............................................................................................................................24

APPENDIX...................................................................................................................................25

Appendix 1: Questionnaire........................................................................................................25

LIST OF TABLES

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Table 1: Sources of awareness of Bon Appetit Cafe/Restaurant.......................................19

LIST OF FIGURES
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Figure 1 : The communication paradigm: Social media platform.......................................4
Figure 2: Decision making on social network and web 2.0.................................................6
Figure 3: Social media impact & Customer purchase funnel..............................................7
Figure 4: Diffusion of innovation........................................................................................8
Figure 5: Gender................................................................................................................12
Figure 6: Age group...........................................................................................................13
Figure 7: Occupation of respondents.................................................................................13
Figure 8: Monthly Income.................................................................................................14
Figure 9: Hours spent on social media..............................................................................15
Figure 10: Social media you mostly engage in..................................................................15
Figure 11: Purpose to use social media.............................................................................16
Figure 12: Medium to gather information of eatery business............................................16
Figure 13: Perception of importance of sales promotion...................................................17
Figure 14: Effectiveness of selected sales promotion tactics for cafe/ restaurants............18
Figure 15: Awareness of Bon appetit cafe/restaurant, Thamel..........................................18
Figure 16: How have you come to know about Bon appetit?............................................19

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 EXECUTIVE SUMMARY

This research explores the relationship between social media advertising & sales
promotion and Café’s. Bon Appetite in the heart of Thamel happens to be one of these
start-up café which is trying appeal large consumers. As this café has still not been
able to aware consumer about its’ existence through Social Media advertising and
sales promotion, this happens to become the problem of Bon Appetite despite its
efforts to improvise food quality, ambiance and other necessities of café. Therefore,
regarding this as a Research problem, this report also provides some suggestion and
advice to this café itself.The research shows that there is significant relationship
between Social Media advertising and its impact on café/restaurant business, this
verifies positive impact on Bon Appetit café if it advertises properly on social media
and makes people aware about them.

The report plots what are the factors that influences customers to visit café’s and
eateries after they’ve face social media advertising and sales promotion tactics. Also,
the factors that customer’s look while noticing the advertisement and sales promotion
tactics is outlined.Sales promotion tactics and its impact on café/restaurant were
analyzed using frequency statistics. This too shows that sales promotion tactics
positively affects eatery businesses, and Bon Appetit will be better off if it implements
similar strategies while running its business. To measure the relationship, primary data
and descriptive data were used and analyzed. Primary data was taken through
selective sampling process (incorporating people from several age groups)

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 CHAPTER 1:
INTRODUCTION

1.1 Context Information:

There are numbers of mass media such as television, advertising, films, magazines,
newspaper and internet. Within many options of promotional mix, one is advertising
and another is social promotion. Advertisements play an important role in forming an
image for the product or service in the mind of consumers. The sky-rocketing use of
internet and to be more specific, Social Media has created immense of opportunity for
any service business to reach targeted audiences for advertisement. Also, sales
promotion tactics may it be through internet or other sources has taken hike in today’s
business environment.

Nepal is food lovers’ paradise. They have been strongly influenced by western culture
to visit cafés and restaurants very often. Increasing number of café business has been
noticed inside Kathmandu valley and all over Nepal. Because of the rising number of
café and restaurant, it is very much essential for these businesses to attract customers
and to retain them. Many make customers aware about their service and use pull
marketing strategies to attract and retain customers. Some of the best possible ways
of doing so is though proper social media advertising and sales promotion (discounts,
giveaway, loyalty card etc.).

There also comes the use of Social Medias as many individual spend considerable
amount of their time in this medium these days. Thus cafés are creative as well as
innovative in order to attract more and more number of customers. Services are
displayed in Social Media with eye catchy caption, pictures and several Sales
Promotion tactics that tends to lure much attention in market. They must be able to
communicate relevant information to potential consumers of the services that they
provide. Thus, advertising in Social Media and Sales Promotion tactics influences
customer to visit the café’s.

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Sales promotion is just another way of advertising the café’s and eateries. But this
simple way welcomes new customer base to your business and happily serves existing
once and retain them. Several sales promotion techniques like creating polls,
sweepstakes, coming up with exciting offers (discounts, loyalty cards) has immensely
supported to improve business revenues. Customers are delighted by noticing the
sales promotion tactics offered by café’s. Rising eatery business has excited foodies to
visit cafés and restaurants because of sales promotion tactics. To fulfill immediate
gratification through offers and engagement tactics offered to them has made café’s
and eateries possible to increase their revenue (Sanchez, 2014).

Bon Appetit has been serving Nepalese and foreigners since 2013. This eatery was
founded with the partnership of two adults Mrs. Nita Wagle Poudel and Mr. Suresh
Adhikari. It serves different cuisine: American, Mexican, Italian, Chinese,
Continental, Indian and Nepali. Serving these much varieties of cuisine, it is termed as
restaurants. Along with these cuisines, this eatery happily serves variety of snacks and
cold as well as hot beverages catering to needs and desires of external tourists visiting
Nepal as well as Nepalese people itself. These two founders have been diligently
working to improve the services in their eatery.

1.2 Purpose of the study

● To identify the impact of social media advertising on the consumer’s decision

to go to café and restaurants
● To know the effectiveness of social media advertising and sales promotion for
the growth of café.
● To access what kind of

1.3 Significance of the study:

● To learn about the audiences and competitors.

● Building brand image.
● Profitable return on investment.

● Increases audiences traffic.

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1.4. Literature survey:

Advertising is the communication tool that makes a product known to consumers. It is

practiced and used by businesses to communicate and brand their products in
competitive market. It shows the products’ benefits or effectiveness compared to other
similar competitors’ products. Advertisement is the tool used by businesses to
aggressively highlight their own products in the minds of consumers. Until and unless
the products are not communicated or highlighted it will be overlooked by the
consumers. The competitors may be covering newspaper pages or airing radios with
their own ads. Thus sometimes businesses also feel necessity to advertise their
products because their competitors are doing so.

Advertisement creates awareness, comprehension, conviction, desire and generates

action. Businesses use advertisements through diverse media such as print, broadcast,
ambient media and others to reach the target market and communicate the products’
effectiveness in day to day life. It provides businesses a means to make market aware
about the new products and its benefits which are expected to solve a particular
problem and fulfill the need of customers.

The essence of social media advertising is creating the touch point to reach the
customers and increase profitability of any industry including any product or service
industry. But, as my concern is finding out the impact on service industry and to be
more specific about eatery (café/ restaurant) business, I’ve proceeded in this way.

1.4.1 Consumer Decision Making Process: Based on Social Media Advertising:

Social media advertising puts a larger impact on customers though the stage quo to
stage of post purchase decision. Eatery business has been continuously using social
media to create brand awareness, engaging with existing customers, driving traffic to
marketing properties and growing channel number.

There are several advertisements which are continually competing with each other to
grasp customers’ attention to their advertisements. The major challenge to these

3
advertisements comes when other extraneous factors such as: price, quality, ambiance,
feasibility to reach the desired location etc. distorts customers’ attention (Lee, 2013).

There is a process in social media advertising and in each stage; social media plays an
important role in giving out, receiving and exchanging information. There are other
factors such as message rejection; misinterpretation and misunderstanding are serious
pitfalls in this communication process.

“In relating to social media marketing, the biggest fear of companies and brands is to
give up the control over the content, and the frequency of information; however, it is
essential for marketers to realize that reviews and discussions, as user-generated
contents, serve to demonstrate a company’s transparency.” (Weber L- Marketing to
social web-2nd Edition)

Customers are screaming to engage with several companies on daily basis. This is
why company finds themselves trapped into this wide opportunistic world of social
media.

Mangold and Faulds have presented a new communication paradigm . This paradigm
includes the communication taken place in social media platform. This
communication channel shows

how customers communicate with one another and with the business houses and how
it affects their attitude and decision making process to reach and keep in touch with
these business houses. It also shows how social media has bestowed customers with
power which they never received in traditional marketplace.

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 Figure 1 : The communication paradigm: Social media platform.

1.4.2 Social Networks has gained popularity as the most viable communication
choice:

1. Eatery businesses are making better use of foodies who create online profiles
on the eateries that they visit. They also rank or rate the eateries on their
experiences. Also, some foodies create their own blogs. These blogs contains
information about the eateries that they visit. Trends has been seen where
restaurants and café’s influences bloggers to write about their eateries. As
already mentioned earlier, word-of-mouth passes rapidly, offline than online;
eateries are largely affected by the use of blogs.

2. When it comes to social media platforms like Facebook, Instagram and others
has been a great opportunity for any eatery businesses. They can easily create
their own page where they can share information about their businesses. They
are seen making people aware about their businesses through social media’s
and gaining popularity. They create wondrous and tempting contents and
picture. These contents and pictures work to appeal customers to their eateries
(Malia, 2015).

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3. Eateries also post videos relating to their eateries using Facebook, YouTube
etc. This in turn provides them the opportunity to welcome customers to their
businesses and increase profit. One of the examples in regard to Nepalese
context is: M&S Hunger Hunt. In here, eateries get featured in a YouTube
channel. The host of the video is one of the popular Nepalese models. Here we
see the use of traditional medium (celebrity endorsement) as well as
contemporary medium (social media) to get the eatery advertised.

4. Companies pay certain amount to get their eateries featured in top in search
engine portals. This way they are benefited as customers get information about
their eateries in no time.

This is to suggest that social media is merely not a fad. It is a new component
which has complemented the traditional communication medium and played
an important role in influencing customers’ decision regarding service usage.
Hence, social media plays an important role when it comes to linking
customers’ and eatery houses. Preferences and decision making depend upon
the inputs provided by parties which are beyond the control of online
marketers, such as peer reviews, referrals, blogs, social networks, and other
forms of user-generated contents. With the use of social media and Web 2.0,
online marketing mix (banners, websites, corporate websites etc) as well as
users experience using the technology also plays vital role in marketer’s effort
to influence customers in making decisions.

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 Figure 2: Decision Making on Social network and Web 2.0

This project is based on how social media advertising affects the way consumer
makes decision and based on their decision how it impacts service industry such as
eatery business and other service industries. Relating to my search on few secondary
sources, I came to find some previously conducted research with the conclusion on
how it affects consumers’ attitudes and their decision. It in turn reflects how it affects
several eatery businesses and their profitability.

Feedbacks and interactions constantly flow from organization to customers through

social media platform. As the result of increasing use of social media amongst people
all around the world, word of mouth as well as information flow works much more
quickly online as compared to offline.

The diffusion models on marketing communication suggests that the adoption process
of innovative product and services diffuses rapidly if there is high interaction between
consumers and the business houses. Thus, diffusion model too suggests that if there is

7
high interaction amongst these two parties then there is high chance for success and
adoption of any services. (Schiffman, Wisenblit, & Kumar, 2016)

However, this section of the above paradigm: Social Networks:

• Blogs

• Social Media Platforms

• Video sharing

• SEOs etc.

It involves high degree of personal taste and subjectivity to users. There is one
overriding factor that influences how the advertisement in social media influences
consumer decision making and it in turn affects the company. This one factor is trust.

1.4.3. Marketers influencing customers’ decision-making process through social

media:

Purchase Form Talk

opinion
Consideration

Use
Awarness

Figure 3: Social media impact & Customer purchase funnel

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Considering other factors such as brand reputation, feasibility, quality; digital
platform enhances decision making of customers. Social media connects customers
from awareness to purchase stage and influences their decision making (Lee, 2013).

In 2012, research was conducted by Google in the U.K., the U.S.A., France, Brazil,
Germany, Japan and Canada. According to the research, social media along with
traditional forms influences decision making from the phase of awareness to purchase
decision. Any activities such as blog post, contents and YouTube videos can be stage
quo where prospects pay attention, gains awareness and use it to validate decision
making in using any kind of services. One of the valuable aspects in social media is
the feedback loop. As social media enhances two-way communication, it has impact
on accessibility and transparency of data to make purchase process easier. Moreover,
social media is considered as purchase validation tool.

Word-of mouth has taken better shape as online medium is booming. The Social Web
has had a pronounced impact on how people view their ability to gather unbiased
information, to seek, find, and obtain a wider range of products and services. Also it
has an impact on how they talk with others about actual experiences both before and
after purchase. The main objective of marketers, particularly with social media, is to
get people to talk about their positive experiences and to accelerate the spread of these
contents around the communities.

Figure 4: Diffusion of innovation

During the process of information acquisition, internal and external factor plays an
important role in influencing customers in digesting, analyzing, filtering, spreading

9
the information & using it to use any service. It thus affects any business houses in
their operation. The cheaper and easily accessible use of technology has thus changed
the way businesses advertise and the way customers take those information.

1.4.4 Attitude of Customers towards Digital Advertising:

The research based on attitudes of customers towards social media advertising

differed amongst people. The research was conducted considering several
demographic factors such as age and gender. Also the credibility of website was
considered as an important factor while conducting this research.

Today’s generation are faced to technology in each and every aspect. Sky-rocketing
improvement in technology has made this trend possible. It was seen that 20-30 aged
adults used internet more frequently to gather all sorts of information including
purchase decision and using services provided by several business houses. Children
born around 2000s are seen as tech savvy. This is because they have experienced
technology and Web 2.0 in each and every aspect of their life. They are more inclined
to use internet to gather information, curriculum and maintain social closeness with
people. But, people aged 50 and above used technology just to gather some sort of
information like weather, news. They regarded social media platform as unreliable to
gather purchase related decision. According to the study, gender also played an
important role in deciding whether to purchase & use the desired service or not. Males
were seen more inclined to social media platform while making this sort of decision
than female counterparts.

Along with the demographics, credibility of the social networks/ digital platform
played crucial role in determining attitude of customers towards digital platform/
social media.

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1.4.5 Relationship between Sales Promotion and Customer Behavior & increase
in company sales:

The research was conducted of two shoe brands in Pakistan. The financial analysis
conducted revealed that after company introduced sales promotion tactics, the sales of
Servis shoe significantly increased in that period (Malik & Rizvi, 2011).

After generalizing the result of the research, researchers concluded that there was
positive relationship between and amongst these variables. So, the hypothesis
conducted is true for any product and services. Furthermore, for the customer who
takes price as most relevant factor in making purchase decision, discount was more
effective. Further research in pricing factor as sales promotion concluded that when
these customers were to make purchase of shoes in future, the discount policy
introduced earlier played a major role when they choose the same brand again in
future (Cretti, 2015).

Other Sales Promotion:

● Giveaways
● Contests & other customer engaging activities
● Special pricing
● Combo offers etc.

1.5 Research methods used for data collection and analysis:

The research is focused on customer views regarding social media advertising and
sales promotion strategies introduced by café/ restaurant business. There are different
factors including price, quality, ambiance and others that influence café/ restaurant
business to be successful. But, this project focuses on social media advertising and
sales promotion which affects their business. Data has been collected from potential
consumers from Kathmandu valley through questionnaire distribution.

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1.5.1 Data Source

127 samples were taken for analysis. There were few limitations in aspect to time,
respondent’s error and other physical factors. To be qualified for the study respondent
must be social media user and restaurant/ café visitors. Data were filled without any
pressure or obligation created to response. The responses were kept confidential in
order to protect respondent’s privacy. The study will be based on both primary as well
as secondary data. The information collected by primary data is specific, relevant and
up-to-date.The primary data will be collected through structured questionnaire
eliciting the information on the influence of social media advertisements& sales
promotion on eatery business.

1.5.2 Collection Tools:

The participants of research were provided with questions related to different aspects
that are linked with the impact of social media advertising and sales promotion on
cafés & restaurants. The factors that customers are much likely to notice about social
media advertising and sales promotion tactics will be elicited from the data collected.
The questionnaire will contain open ended and close ended question that will be
effective to compare the views of respondents and provide respondents the
opportunity to be more expressive. The participants were asked to provide and answer
questions based on which data were collected for analysis. Tools such as Likert scale
ranging from 1to 5 for analysis of customer views or scale level namely strongly
disagree, disagree, neutral, agree and strongly disagree. Also single response
questionnaire and multiple choice questionnaires is used to collect the data from
surveyors.

1.5.3 Data analysis tools and techniques.

The study will be based on both primary as well as secondary data. The primary data
will be collected through structured questionnaire eliciting the information on the
influence of advertisements on consumer buying behavior. The questionnaire will
contain open ended and close ended question that will be effective to compare the
views of respondents and provide respondents the opportunity to be more expressive.

12
 Secondary data will also be collected from secondary database sites and articles found
in different media such as Aaron Allen. (2013). Aaroon Allen, blog.

CHAPTER 2
DATA PRESENTATION & ANALYSIS

The data presented here are the primary data. These data were collected using Google
form. The totals of 127 responses were collected using Google form. All the graphs
presented below are the result of the use of excel sheet.

The figures shown below are all extracted from Google sheets:

2.1 Respondent profile:

Table no : i

Gender wise distribution

Gender No. of respondent

Male 44

Female 83

Total 127

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 Source:Questionnaire

Figure 5: Gender

Out of 127 respondents, Male respondents were 44 whereas female respondents were

83.

Table no.II

Age group distribution

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 Figure 6: Age group

As per the data, 107 respondents were aged 15-25, 17 were 26-40, 4 were 41-60 and 1
was below 15.

Figure 7: Occupation of respondents

The data reflects: Employed: 35, Businessman: 8, Homemaker:1 , Student:77 and

Others:6

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 Figure 8: Monthly Income

Less than 5000: 46.5%, 5000-9999: 11.8%, 10000-50000: 34.6%, More than 50000:
6.3%

2.2. Data Presentation:

2.2.1 Factors affecting social media advertisement on café/restaurant business:

Factors such as hours spent on social media, type of social media that audiences
engage in, and purpose to use social media, credibility and reliability of information
presented by café/restaurants in social media & audience’s perception towards social
media advertising to visit café/ restaurant affects how eatery business operates to pull
more customers and increase their services.

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 Figure 9: Hours spent on Social Media

Figure 10: Social media you mostly engage in.

17
 Figure 11: Purpose to use Social Media

Most of the respondents were positive regarding their purpose to use social media was
to gather product/service related information.

One more question was prepared to know exactly how customers come to know about
café and their answer to how they visit café. The responses were as follows:

Figure 12: Medium to gather information of Eatery Business

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If we combine the survey data from Figure 11 and Figure 12, when respondents
engage in social media to socialize, they can be aware of certain product/services
while socializing with friends, family/relatives. Thus, social media indirectly too
plays a major role while individual spare their time on social media whether it be the
purpose to socialize.

2.2.2 How sales promotion affects café/restaurant business:

It is quite essential to view whether or not customers view sales promotion tactics
effective for any eatery business. As per the survey conducted, it was reflected that
Sales promotion indeed played a major role for any café/restaurant business.

Figure 13: Perception of importance of Sales Promotion

The exact data above shows that: 96 respondents says ‘Yes’ Sales Promotion is
essential for any eatery business, 25 says ‘Maybe’ and 5 says ‘No’.

Respondents were also asked to convey their perception regarding the effectiveness of
few selected Sales Promotion tactics (mostly used ones). Their responses regarding
effectiveness of selected Sales Promotion tactics is presented below in the graph.

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 Figure 14: Effectiveness of selected Sales Promotion tactics for cafe/
restaurants.

Discount was chosen by most of the respondents followed by combo offers given by
café/restaurants, loyalty cards, contests on social media and giveaways.. Respondents
claimed that discounts were a sales promotion tactics amongst others that they relied
on most.

Figure 15: Awareness of Bon Appetit Cafe/Restaurant, Thamel

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 Figure 16: How have you come to know about Bon Appetit?

Amongst 127 respondents, 59 were aware of Bon Appetit Café/Restaurant located in

Thamel. According to Figure 16, the source of 59 respondents of this café/restaurant
is as follows:

Table 1: Sources of awareness of Bon Appetit Cafe/Restaurant

Sources of Number of people

awareness

Friends 30

Family/Relatives 10

Internet 2

Mass media 0

Sales Promotion 0

Social Media 9

Others 8

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Since, only 9 out of 59 respondents were aware from Social Media and non from sales
promotion; it seems obvious that this eatery is not much into social media advertising
and utilization sales promotion tactics.

2.3 Data analysis:

The data can be analyzed through SWOT method.The full form of SWOT is
Strength,Weakness,Opportunities and Threats.

2.3.1 Strength:

Some of the strength of social media advertising and sales promotion in Bon appetit
café are:

i. Advertising and Sales promotion helps to attract new customers.

ii. It also helps to remind and inform the existing customers about the
product and service.

2.3.2 Weakness:

i. Customers might be dissatisfied with the service provided such as

untimely delivery and unavailability of the service or product.

ii. The advertising and sales promotion tactics might not be effective to
every customers.

2.3.3 Opportunities:

i. Analyzing and improving the weakness to retain the existing customers

as well as new ones.

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 ii. Coming up with new ideas for advertising and sales promotion to
attract the attention of the target customers.

2.3.4 Threats:

i. The cost and budget of advertising and sales promotion.

ii. Customers getting attracted towards the other competitors and thus,
loosing them.

2.4. Findings and discussions:

Among 127 respondents 47% were aware and more than half 53.5% samples are
unaware of this eatery house. and 40 of them knew from their friends followed by
family/relatives and only 9 respondents were aware from the use of social media The
data presented regarding the use of Social media amongst few sample represents that
social media plays a role when a customer plans to visit café/ restaurant.About 97% of
people gather information about eatery business from social media Amongst several
social media’s (Facebook, YouTube and Instagram) plays some critical role to make
people aware about café/restaurants. Therefore, Bon Appetit Café/Restaurant has
certain positive impact if it tends to get deeper into Social Media advertising. This
helps them make aware about their café/restaurant to those who are not yet aware
about its existence. 96 respondents says ‘Yes’ Sales Promotion is essential for any
eatery business, 25 says ‘Maybe’ and 5 says ‘No’.But the numeber of people who
knew about the sales promotion tactics of Bon appitit was 0. The effectiveness of
sales promotion tactics can be compiled with this data shown in fig no. 14 show that
around 85% respondents claimed that discounts were a sales promotion tactics
amongst others that they relied on most followed by combo offers given by
café/restaurants, loyalty cards, contests on social media and giveaways.

The survey collected and analyzed predicts that there is positive relationship between
Social Media advertising and Sales Promotion and their effect/impact on

23
Café/Restaurant business. Also, the survey collects if people are aware of Bon Appetit
café/restaurant, Thamel and their use of sales promotion tool for effectiveness of
running their business.

As the theory states the customers decision making process based on social media
advertising the survey analyze that most of the respondents mostly use YouTube
followed by Facebook and Instagram. Also, they use these social media platform
mostly to socialize and almost half sample use social media to gather product/service
related information. Social media also plays an important role when individuals just
use social media for the purpose of socializing; because through this medium they can
know about any product/service while they talk to their near and dear ones. It is quite
essential to view whether or not customers view sales promotion tactics effective for
any eatery business. As per the survey conducted, it was reflected that Sales
promotion indeed played a major role for any café/restaurant business.

CHAPTER 3
CONCLUSION AND ACTION IMPLICATIONS

3.1 Conclusion:

This research concludes that there is positive co-relation between social media
advertising & sales promotion and its impact on café business. Also, the survey
collects if people are aware of Bon Appetit café/restaurant, Thamel and their use of
sales promotion tool for effectiveness of running their business. Among 127
respondents, most of them gathered information about Eatery Business through their
friend circle which was followed by Social Media. The most of the respondents

24
mostly use YouTube followed by Facebook and Instagram. Also, they use these social
media platforms mostly to socialize and almost half sample use social media to gather
product/service related information. Is it therefore, clear that customers do use social
media to know and to get review regarding specific café/ restaurant when they are
planning to visit. 96 respondents feel that sales promotion tactic is effective for eatery
business. Amongst several tactics, most of them likely react positively to discounts,
combo offers and loyalty card tactics introduced by eatery businesses. Also they feel
positive to other tactics such as contests on social media and giveaways. But, most
respondents are neutral to their feelings about the effectiveness of sales promotion
tactics of eatery businesses around Kathmandu Valley. It seems quite obvious that
most of the people are unaware about this eatery located in Thamel. More than half
(53.5%) samples are unaware of this eatery house. The ones who have come to know
about this Café/Restaurant were aware from their friends’ circle, family/ relatives.
Only 9 respondents were aware from the use of social media. Therefore, it can be
predicted that Bon Appetit is very less involved in social media advertising. Also,
none of these people respondents are aware of Bon Appetit’s sales promotion tactics. I
had some expectation regarding the social media advertising and sales promotion
tactics about the restaurant but as for my findings it didn’t meet my expectations. I
had expected that Bon appitit was more involved in advertising and sales
promotions.While in the process of collecting the data I went back and forth and made
sure of all the information.

3.2 Action Implications:

Based on my above findings, to attract more customers to visit your eatery business,
social media advertising is quite crucial. Eatery businesses must not only focus in
creating right ambiance, quality food and other important factors for successful
business, but they also need to be an opportunistic. Therefore, Bon Appetit
café/restaurant can post creative posts on YouTube and invite people to subscribe to
their Channel. Also, they can make appealing posts which is specifically targeted to
their customers. Bon Appetit Café/Restaurant can also find foodies and appeal them in
some ways so that they can aware people about their eatery business and promote

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them though their post on Instagram. Since, the data suggests that sales promotion is
an effective tool to promote any business and Bon Appetit has not used sales
promotion tactics, they can use already available sales promotion tactics such as:
discounts, loyalty cards, combo offers, giveaways or introduce their own sales
promotion tactics which can affect their business positively.

REFERENCES

Aaron Allen. (2013). AaroonAllen, blog. Retrieved from Aaroon Allen:

http://aaronallen.com/blog/restaurant-promotions/promote-a-restaurant-10-tactics-for-
driving-f-and-b-sales

Cretti, C. (2015). Consumer's attitude towards social media advertising. Fribourg:

University of Fribour

DeMers, J. (2014, August 11). Forbes. Retrieved from Forbes:

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https://www.forbes.com/sites/jaysondemers/2014/08/11/the-top-10-benefits-of-social-
media-marketing/#2e1cdee01f80

Edwards, D. G. (2013, March 15). Apps, Why your restaurant needs social media
advertising? Retrieved from Social Media Monthly:

https://thesocialmediamonthly.com/why-your-restaurant-needs-social-media/

Lee, E. (2013). Impact of social media on consumer behavior. Turku, Finland: Turku
University of Applied Sciences.

Malik, S., & Rizvi, S. N. (2011). Impact of Sales Promotion on Organizations’

Profitability and. Lahore: IBIT University.

Sanchez, G. A. (2014). Queso & Cheese Marketing. Retrieved from Queso & Cheese
Marketing: https://www.garyasanchez.com/9-benefits-of-sales-promotions

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 APPENDIX

Appendix 1: Questionnaire

Sir/Madam,
I am a student of Institute of Management Studies and presently doing a research project
on "Effects of social media advertising and sales promotion of café/restaurant (Bon
Appetit Café/Restaurant)". This is an academic project and I ensure you that all of the
information provided by you shall be treated with maximum confidentiality and used for
academic purpose only. It is thereby my humble request that you kindly spare few
minutes of your limited time for your cooperation to answer the below questions.

1. Gender:
• Male
• Female
• Others (please specify)

2. Age:
• Below 15
• 15-30
• 30-50
• 50 above

3. Occupation:
• Student
• Home maker
• Employed
• Businessman
• Others (please specify)

4. Monthly Income:
• Less Than Rs.5000
• Rs.5000- Rs.10000
• Rs.10000- Rs.50000
• Above Rs.50000

5. How many hours do you spend on social media in a day?

• Below 3 hours
• 3-6 hours

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 • 6-10 hours
• 10 hours and above

6. In which social media platform do you mostly engage in? [Multiple choice]
• Facebook
• Instagram
• YouTube
• Blogging
• Others (please specify)

7. For what purpose do you use social media? [Multiple Choice]

• Socialize
• Gather product/service related information
• Daily News
• Weather forecast
• Time pass
• Others (please specify)

8. Which medium do you use to gather eatery (café/restaurant) business related

information?
• Social media
• Friends
• Family/Relatives
• Mass media (TV, radio, newspaper etc.)
• Others (please specify)

9. I am aware of eatery (café/restaurant) business through the use of social media?

• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

10. Do you think social media platform gives you reliable/credible information to
visit café’s?
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

11. How often do you use social media to visit any café?
• Never
• Rarely
• Neither

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 • Often
• Always

12. Why don’t you use social media to gather information?

• Not reliable
• Other option (not completed)

13. Which sales promotion tactics do you think is effective for eatery (café/restaurant
business)
• Discount
• Giveaways
• Contests on social media
• Combo offers
• Special pricing

14. Rate how satisfied are you with sales promotion tactics of eatery business (to visit
café/restaurant).
• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

If you are positive about Q. no 14 (proceed).

15. Which sales promotion tactic do you rely on most (to visit café/restaurant)
• Discount
• Giveaways
• Contests on social media
• Combo offers
• Special pricing

16. Are you aware of Bon Appetit Café/Restaurant, Thamel?

• Yes
• No

17. How did you come to know about Bon Appetit Café/Restaurant, Thamel?
• Friends
• Family/Relatives
• Social Media
• Mass Media (TV, Newspapers, Radio etc)
• Others (please specify)

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 18. Are/Were you ever aware of sales promotion tactics of Bon Appetit
Café/Restaurant?
• Yes
• No

If Yes to Q. no 8 (proceed)
If No to Q. no 8 (Thank you for sparing few minutes of your valuable time in
filling this survey.)

19. What sales promotion tactics of Bon Appetit Café/Restaurant are/were you aware?
• Discount
• Giveaways
• Contests on social media
• Combo offers
• Special pricing

Thank you for sparing few minutes of your valuable time in filling this survey.

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